On Tuesday, June 21st, we had the pleasure to host a webinar to present and support myIPEM Grand Opening. Our Head of Product, Meitar Keshet, explained all the new features that LPs, GPs, Advisors & Business Services can use to create new connections and start to plan their attendance at IPEM 2022. We hope that…
Private equity groups are entering a new period that could well find them having to rethink their hurdle rates. With government bonds yielding 4.5% and private equity returns likely to recalibrate to a lower level in today’s challenging markets, General Partners cannot risk pulling a hamstring by setting the performance bar too low. Many will increasingly find investors exercising their negotiating skills to raise the hurdle rate and lower fees. In this competitive arena, who will have the flexibility, and the confidence, to meet the hurdle rate challenge?
Building on new foundations seems like an entirely appropriate theme for IPEM 2022 given the enormity of the shifting macro and geopolitical sands we are currently witnessing.
Family offices are playing it smart as they increase their allocations to private equity by investing directly in businesses that are close to their heart. The Global Family Office Report just published by UBS shows that 42% of families plan to increase these investments, with many looking to invest into businesses at an earlier stage. It makes sense given that entrepreneurial blood runs through their veins. And if it leads to higher returns…well, we all know that a Happy Family is priceless!
Sky high valuations have created conditions necessary for the Private Equity Industry to Strike Back and complete deals at prices that could yet prove to be costly. But far from engaging in weird Jedi mind tricks that are hoodwinking investors, GPs are simply responding to market dynamics and let’s face it, the galaxy is hardly at threat if the odd deal or two goes awry. Some might compare it to a Ponzi scheme but this is an industry where performance has lived up to scrutiny so maybe it’s time to relax and have a drink in the Cantina Bar. Mine’s the first round!